Wheat farmers in Wyoming are more worried about higher fertilizer and input costs impacting their bottom lines than they are about China’s retaliatory tariffs on U.S. goods, according to a state wheat commission.
Keith Kennedy, executive director of the Wyoming Wheat Marketing Commission, said the biggest export buyer of the state’s wheat is Mexico. He says it varies how much gets sent to China.
China’s retaliatory import tariffs on American wheat went into effect earlier this year. The nation also put a tariff on soybeans. Soybeans are the U.S.’s largest agricultural export to China.
“ That's one thing I think that's kind of in the back of everybody's mind, is will there be any shift from soybean acres to wheat acres?” Kennedy said.
If farmers in other states end up planting more wheat, that could become an issue for Wyoming farmers, as more wheat supply in the market could drive down prices.
Kennedy said farmers are also watching input costs.
“ I would say there's some trepidation on the ground,” he said. “Fertilizer for one, as well as parts.”
It’s too late for Wyoming farmers to change their plans, as the majority of wheat planted here gets put in the ground in the winter months.
The Trump administration announced on May 12 that the U.S. and China have temporarily agreed to suspend most tariffs for 90 days. The announcement didn’t mention wheat in specific, but said that prior tariffs will be suspended by May 14.
CBS News reported that tariffs on goods imported from the U.S. into China would be reduced to 10%.